Ruiz Co. provides the following sales forecast for the next four months.
April May June July
...
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Business, 17.08.2021 19:30 esekvng4342
Ruiz Co. provides the following sales forecast for the next four months.
April May June July
Sales (units) 650 730 680 770
The company wants to end each month with ending finished goods inventory equal to 40% of next month's forecasted sales. Finished goods inventory on April 1 is 260 units. Assume July's budgeted production is 680 units. In addition, each finished unit requires six pounds (lbs.) of raw materials and the company wants to end each month with raw materials inventory equal to 40% of next month's production needs. Beginning raw materials inventory for April was 1637 pounds. Assume direct materials cost $5 per pound.
Required:
Prepare a direct materials budget for April, May, and June. (Round your intermediate calculations and final answers to the rest whole dollar amount.)
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